Archived Information

DOE Budget

8/4/05

FY06 State Budget Update

The Governor signed the FY2006 state budget on June 30 (chapter 45 of the acts of 2005). Here is a summary of the major provisions relating to school finance and state aid programs. Information on changes to categorical grant programs will be distributed through the appropriate DOE program units.

Chapter 70

The final chapter 70 appropriation of $3,288.9 million represents a 3.3% increase over the FY05 funding level. Required local contribution and net school spending requirements for each district have been posted on this website.

The budget also includes $6.87 million for foundation reserve ("pothole") awards, and establishes some additional categories for eligibility. Application instructions and eligibility criteria for these funds are also posted on the website.

Special Education Funding

The circuit breaker program heads into its third year of operation with a $201.6 million appropriation. At this point in time we expect that the reimbursement rate for FY06 payments will be near the statutory 75% rate. We will provide an updated estimate after districts have finished reporting their FY05 costs.

The program again includes a $3 million reserve for districts experiencing extraordinary increases in their current year (FY06) costs. It also includes funding for a pilot program to study the role of collaboratives in providing cost effective transportation services for special education students. We expect to post eligibility guidance by the end of the calendar year.

Tuition rates for approved private schools, which had been frozen in FY05, may again be increased for inflation by the Operational Services Division.

Transportation Funding

Regional school transportation funding has been increased by 18.4%, to $45 million. Please note that the amounts listed for each district on the FY06 cherry sheets are only estimates, based on last year's claims. The actual FY06 entitlements and payments will be calculated later this year based on each district's actual FY05 spending as reported on the end-of-year financial returns.

Last year's new transportation reimbursement program for students attending out-of-district vocational programs under chapter 74 has been continued and level funded at $1.6 million.

Charter School Funding

The new charter school tuition formula adopted in FY05 remains in effect for FY06. The budget includes $50.1 million for tuition reimbursements to districts and $14.8 million for the facilities component of the new formula. Although these amounts are below the levels needed to fully fund these items, the numbers are likely to change as a result of decisions being made this summer by the Board of Education on the possible closing of two schools. We will provide updated estimates of reimbursements at the end of this month, with an additional update in late fall after actual enrollment data has been reported.